Item No. 7b_supp 
Meeting Date:  Sept. 13, 2016 
Incentive Pay Program Status
Update 
Dave Caplan 
Sr. Director  Strategic Initiatives 
September 13, 2016

Incentive Pay Program 
Status Rating 
Legend 
Solid plan in place and on schedule 
Solid plan in place; slightly behind schedule 
Significantly behind; mitigation plan developed 

Traffic Light Legend 
2

Incentive Pay Program Status 
Goal                          Status             Traffic Light 
1.  Customer Satisfaction: 
Aviation: Achieve a minimum of 4.13 score on ASQ    ASQ score through June 2016
survey for 2016 from 4.07 in 2015.                is 4.08; Need to achieve 4.18
for balance of year; mitigation
plans being developed. 
Maritime and Economic Development: Quantitatively  Customer surveys developed
and qualitatively assess customer satisfaction of       and received on August 12th. 
Maritime and Economic Development Divisions'
customers to measure satisfaction with Port services
and facilities; and identify areas for improvement. 

Strong mitigation plan is being developed to address ASQ challenge 
3

Incentive Pay Program Status 
Goal                    Status                      Traffic Light 
1.  Customer Satisfaction: 
Public Affairs: Assess within our          Focus groups were conducted on July 18th as part
jurisdiction and other local government                        of the work to develop a "campaign" to build a
understanding of the Port and our role in   coalition and raise visibility around public policy
the regional and local economy. 
actions that advance the preservation and
growth of middle-class jobs in this region. Public
impressions of Port were also examined. 
August: PRR will conduct focus groups to gather
qualitative data and more deeply explore the
results of the public opinion research regarding
SAMP and airport expansion. Information about
general public perceptions will also be gleaned. 
Public Affairs has a solid plan and is executing to it 
4

Incentive Pay Program Status 
Goal                    Status                      Traffic Light 
1.  Customer Satisfaction: 
By November 1, 2016, provide a report to   Will be developed by November 1st, after
the Commission that                analysis is completed 
includes: 
i. Benchmarks for future goal setting to
improve satisfaction with 
Port services and facilities. 
ii. Strategies to improve the ASQ. 
iii. High impact actions and programs to
improve public and other 
local government understanding of the
Port and our role in the 
regional and local economy 

To be completed by November 1st 
5

Incentive Pay Program Status 
Goal                          Status               Traffic Light 
2 (a). Small and Women/Minority Business: Increase   (a) Small Business at 26.4% and
small business contracting participation Port-wide to  WMBE at 3.5% thru June 2016. Will
35% including sub-goal of a 50% increase (over 2015)  need to achieve 43% (SBE) and
of certified Washington State Office of Minority and   6.7% (WMBE) for balance of year to
Women's Business Enterprises to 5.1%.           achieve goal. Very high risk.
(b). Develop and ensure Port-wide implementation of a
small and WMBE business participation scorecard that  (b) New processes in development
measures the Port's small and WMBE business       that will have impact on 2017
participation and that will serve to guide and monitor
results with a scorecard measuring
efforts in all Port operating divisions and non-operating
departments.                            Port-wide participation. 
(c). By November 1, 2016, assess all Port efforts geared   (c) Assessment will be completed
to promoting small and WMBE business participation   by Nov. 1 with a scorecard rating
and provide a scorecard to the Commission rating the   effectiveness and improvement
effectiveness of each and providing specific          recommendations. 
recommendations for improvements for Commission
consideration.       Public Affairs has a solid plan and is executing to it
SBE/WMBE at high risk due to change in spend profile         6

Incentive Pay Program Status 
Goal                          Status               Traffic Light 
3. Environmental Stewardship:
(a) Develop and ensure Port-wide implementation of an (a) Plan in place; Draft scorecard
environmental scorecard that measures the Port        developed. 
environmental footprint and that will serve to guide
and monitor reduction efforts in all Port operating
divisions and non-operating departments. 
(b) By November 1, 2016, assess potential opportunities
for increasing the use of renewable energy and      (b) Potential opportunities to be
reducing GHG emissions at Port owned facilities and      identified by September 30th. 
report findings and recommendations to the
Commission for consideration. 

Public Affairs has a solid plan and is executing to it                                  Environmental has solid plan and execution
7

Incentive Pay Program Status 
Goal                          Status 
4. Financials: Based on modeling assumptions, an     As of June 30th, the projected
estimated $2 million positive year-end variance to    year-end positive variance is
budget is necessary to fund the plan. Maximum      $4.4M (no payout unless 2 of
funding is $5 million in 2016.                    the 3 non-financial goals are
achieved). 


Forecasting $4.4M year end positive variance 
8

Appendix

Incentive Pay Plan Forecast 
YTD
YTD   YTD   Bud   2016  2016 Fcst/Bud
(in $ thousand)                       Actual  Budget Variance  Forecast  Budget Variance
Non-Aeronautical Revenues               161,658  152,274    9,384  344,494  327,135        17,359
Total Port O&M Expenses               147,874  168,621   20,747       336,642  335,943         (699)
Total Positive Budget Variance (a)                         30,131                      16,660
Adjustments:
1) Litigated Injuries & Damages             1,235     - (1,235)         1,235     - (1,235) 
2) Environmental Remediation Liability           82    3,398    3,316    6,383   3,448   (2,935)
3) Contingencies                        150        250        100     400   2,000    1,600 
4) Excluded Major Budget Initiatives/Programs      -     1,800    1,800      -    4,000    4,000 
5) Prior-Year Capital Project Write-offs           -  - -        -  - - 
6) Major Accounting Changes                -  - -        -  - - 
Total Adjustments (b)                   1,467   5,448    3,981    8,018       9,448    1,430
Adjusted Total Positive Variance (ATPV=a-b)                26,150                     15,230
Payout Pool (50% of ATPV)                          13,075                    7,615 
Pro-Rated for 7 Months in 2016                 What is the key point or message of this slide?         7,627                  4,442
Meeting financial goal 
10

Weekly Update of Key ASQ Results 



Published Tuesday afternoon on Business Intelligence (BI) hub
11

Rating % Breakdown: From Poor to Excellent 



Need to Drive Ratings: "Goods" to "Very Goods" and Very Goods to "Excellent" 
12

Weekly trends and Most Important Service Items
for Passengers rating us 4 or less 



3Ws and a "C": Wait Times; Way Finding; WiFi ;Cleanliness 
13